Thinking of investing in brisbane property?
As Australia's third-largest city, Brisbane offers a large and diverse market for the property investor. For those considering a property investment in one of Australia's capital cities, here's three reasons why you might consider Brisbane:
Brisbane property investment performance
Brisbane has historically enjoyed strong population growth and economic performance, which has driven attractive returns for the property investor. Over the past few decades, Brisbane property has achieved excellent long-term capital growth for the strategic property investor.
Brisbane Houses - 8.21% per annum
Brisbane Units - 6.58% Per annum
Brisbane Property Rental Return
Brisbane property continues to enjoy strong rental yields, despite falling interest rates. Investment property yields in Brisbane have consistently tracked almost a percentage point higher than in Sydney and Melbourne.
Brisbane Property Affordability
The same standard of property is a lot more affordable in Brisbane than in other east coast capitals. Median dwelling prices for each city show Brisbane has a much lower bar to entry for the property investor than Sydney or Melbourne:
what makes a BAD investment property in brisbane?
While Brisbane has produced great returns for property investors over the long-term, many investors make basic mistakes which prevent them from enjoying these returns. Such mistakes include:
- Buying the wrong property type. Many investors will not understand what property types are best for Brisbane's current and future housing needs. As a result, they will purchase a property that is poorly positioned to attract future asset price and rental growth.
- Buying in the wrong area. Not all parts of Brisbane will deliver equal results. There are many suburbs in Brisbane that will suffer from oversupply of property relative to demand, which will prevent price growth and often force investors to sell at a price below what they paid for.
- Overpaying. Unfortunately, many companies take advantage of the investor's lack of Brisbane knowledge to sell properties that are not only the wrong types in the wrong areas, but are too expensive to boot. This is a lethal cocktail for investment returns, as it will take many years just to get back to your starting point.
WHAT MAKES A GOOD INVESTMENT PROPERTY IN BRISBANE?
Buying a high-quality investment property in Brisbane doesn't require genius, but it does require the time to research the market and assess individual properties to make an informed decision. When determining what makes a quality Brisbane investment property, we consider these four major areas:
- Location. Is the property located near to jobs, services, infrastructure and amenities? Is it a nice place to live?
- Property Type. Is the property a flexible configuration that suits a wide range of buying and renting demographics? Does it suit the area it's located in?
- Design. Is the property desirable to live in? If not, can this be fixed at a reasonable price?
- Price. Is the property priced below its intrinsic value? Can we achieve a meaningful discount?
This approach isn't about 'hot-spotting', or speculating on the next boom area. There are hundreds of properties in many different markets of Brisbane that would make strong investment, but exactly where and what type will depend on your own personal financial situation and goals. Our approach is to apply our local knowledge through a strict process of research, assessment and comparison, to secure a quality asset for our clients at below its true value.
TIPS for buying investment properties in brisbane
While everyone's circumstances are different, there are some general tips you can apply when buying looking to buy an investment property in Brisbane:
- Stick to areas and properties with owner-occupier demand. Look for suburbs in Brisbane where there is consistent owner-occupier demand. Check out the owner-occupier to renter ratio to find this out for each suburb. Buy the kinds of properties owner-occupiers want - detached houses, well-designed townhouses and bigger apartments in smaller locations - these grow in value faster and are price movements are less volatile
- Don't stray too far from Brisbane's median price. The median house or unit price is there to tell you how where most of the sales transactions are occuring. If you go too far away from it, you're increasing your risk of owning a property that not many people want (or can afford to buy). That's when you can get into problems as a property investor.
- Stay away from high-rise apartments, big townhouse complexes and new development areas. These classes of property have been called 'the ghettos of the future' and there's a good reason why: there is ongoing issues of oversupply, too many investor owners (and therefore too many renters) and poor capital growth. You can do a lot better than that for your investment.
How do we help people investing in Brisbane Property?
Aquila Property Investment offers a highly professional, independent and affordable alternative for those looking to invest in Brisbane property. We'll help you:
- Independently determine where to invest and what to invest in, based on your personal objectives and financial situation,
- Locate and purchase a high-quality property at the best possible price using our expert buyers agency service,
- Provide ongoing service to ensure your property is professionally managed and maintained while you are overseas.
We specialise in buying high-performing properties at below market price. We don't sell properties or take commissions, so our advice and services are fully independent and in your interest.
Brisbane Property Investment - Case Studies
40 Charlotte St Wavell Heights - $545,000
$35,00 below asking price, a 5.62% yield and plenty of opportunity to value add - all in a location 9kms from the CBD. A great investment for the strategic investor.
21 Fabian Pl Bracken Ridge - $446,000
A large and contemporary home in a area of tight supply and high demand, this property has grown in value by 7% in 9 months and rents at a 5.36% yield.
6/24 DETHRIDGE ST NORTHGATE - $461,000
A spacious, well-designed townhouse in a small complex, this is a flexible property positioned close to road and rail infrastructure and the major Brisbane employment hubs.
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